The Pine Barrens Credit Program
Transferable Development Rights in Central Suffolk County,
New York
James T.B. Tripp
General Counsel, Environmental Defense Fund
Chair, PBC Clearinghouse, an advisory board to the Central Pine Barrens Joint
Planning and Policy Commission

•
LI Central Pine Barrens: Critical watershed of LI’s groundwater system
•
1993: NY State Legislature passed the
“Long Island Pine Barrens Protection Act”
(New York ECL Article 57) , protecting the largest, “central” remaining Long Island
Pine Barrens region.
•
Principal goals of the Act:
•
Protection of ground, surface, and drinking water for 1.8 million residents of Suffolk County, LI
•
Protection of a threatened landscape found in only several locations in the
United States.
•
Principal mechanisms : County and state acquisition, planning and regulation and a
TDR program
•
Planning and implementation entity: a five member Commission made up of the three town supervisors, Suffolk County Executive and Governor Early Fall colors in the upland barrens,Rocky Point.

The Commission’s Purview
•Under NY Environmental Conservation Law
Article 57, the Commission produced and started implementing a Regional Plan, the Central Pine
Barrens Comprehensive Land Use Plan, in June
1995.
•Produced during a strict two year planning period, starting with the July 1993 legislation.
•Under the Act and the Plan, the Commission has joint land use review, permitting, and enforcement authority along with local municipalities.
• Operates a transferable development rights and conservation easement program.
• Coordinates regional public lands stewardship and management.
•For the Plan to take effect the Commission had to approve it unanimously and each town had to certify it and amend its zoning ordinances

Central Pine Barrens Land Use Categories &
Principles
1.
Central Pine Barrens (102,500 acres) =
Core Preservation Area (55,000 acres) +
Compatible Growth Area (CGA) (47,500 acres).
2.
Core Area development is prohibited without a hardship permit from the Commission.
3.
As of 1995, Core Area had about 13,000 acres of privately owned, undeveloped land.
4.
The Core and designated CGA sending areas are eligible for “Pine Barrens Credits” - i.e., transferable development rights - in exchange for a permanent conservation easement.
5.
The conservation easements are permanent. The
Commission inspects parcels and enforces easements.
Open fields, pastures, woodlands and both fresh and salt water bodies are found throughout the Core and the CGA.

Pine Barrens Credits – Transferable Development Rights
Program Building Blocks
1.
Planning Goal –
Resource protection and maintenance of land value in the Core Area
2.
Statutory Foundation –
NY ECL Article 57
3.
Sending Areas –
Defined by statute and Plan
4.
Allocation Formula - Defined in Plan and incorporated in town zoning
5.
Receiving Areas –
Defined in regional Plan by Towns
6.
Transfer and Redemption Allocation Rules –
Defined in regional Plan
7.
Oversight Board(s) – Pine Barrens Credit Clearinghouse and Pine Barrens Commission
8.
Seed Funding – From NYS DEC Natural Resources
Damages Unit settlement on ten year loan $5 million as
Clearinghouse capital As with a TDR program, pitch pine reforestation takes time, well defined goals, oversight, nourishment, labor, and perhaps seed money to establish long lasting roots.

Pine Barrens Credits – Transferable Development Rights
Sending Areas & Credit Allocations
Not reducing Credit allocation for sensitive features encourages participation in the Credit Program, and protection of the barrens’ natural resources.
• Core area properties and CGA sending areas are eligible for Credits. Public and private conservation lands are not.
• In exchange for Pine Barrens Credits, owners of sending parcels relinquish their “nondevelopment” rights through a recorded conservation easement.
• Allocation is based upon size (acres), zoning (1995), existing road frontage and any existing development on site.
• No reduction is made for wetlands, steep slopes or other development constraints.
• Allocation may be appealed, and adjustment (if any) based upon a hearing.
• Final allocation leads to a “Credit Certificate” in exchange for permanent conservation easement.
• The new Credits go onto the market to be sold to
“redemptors” or “Credit wholesalers”.

Pine Barrens Credits – Transferable Development Rights
Receiving Areas & Redemptions
•
Receiving sites ( outside Core ) are defined by individual towns & approved by the Commission and rules governing base and bonus zoning are incorporated into town zoning ordinances certified in
Plan
• “As of right” redemptions – local Planning Board ministerial review. Under the plan, each town must designate as-of-right receiving areas with enough capacity to absorb all PBCs that could be issued to sending area properties in that town.
•Although Plan establishes rules for TDR programs, each town has primarily an intra-municipal TDR program
• “Non as of right”(e.g., PDPs) redemptions – discretion of individual Town Board.
• Redemptions may be residential, commercial, industrial, or other. Redemptions possible through
County Health Department as septic “credits”.

• “As of right” means that the redemption of a PBC entitles the redeemer to an increase in intensity or density. Credits generated in any Central Pine Barrens area in any town are redeemable for any as of right PBC use in each respective town
• Brookhaven
– As-of-right transfer to one and two acre residentially zoned vacant lands anywhere in the Town outside the Core Preservation Area with increased density of 20% based on parcel size eligibility criteria through approval of the Planning Board
• Total yield equal to the square footage of the total parcel contained within the receiving site divided by the minimum square footage allowed under zoning
– Use of innovative planning techniques such as Planned Development
Districts or Planned Retirement Communities subject to certain environmental constraints
– The Town Board may consider approving a PBC redemption requirement as a condition of its approvals of the change in zoning

• Riverhead
– Town identified commercially zoned receiving districts which are eligible for PBCs in an as of right manner from the
Core Preservation Area
– Single PBC shall permit an increase in density equal to 300 gallons per day per acre of the equivalent sewage flow as described by the Suffolk County Department Of Health
• Southampton
– The Plan and the Southampton zoning code identify specific as-of-right receiving areas with allowable density increases up to 2 units per acre
– Single PBC allows an increase in density equal to one dwelling unit
– No as-of-right transfer across school district boundaries
– Use of Planned Development Districts to accommodate
PBCs through development schemes that convert PBCs to highly tax ratable uses with approval of Town Board

• Each town’s as-of-right receiving areas also had to be of sufficient “quality” to make the TDR program economically viable
• Economic consultant estimated likely range of values of PBCs in each town based on receiving area real estate values
– Calculated initial PBC value for each town at 90% of low end of range of estimates
– Clearinghouse offered to purchase PBCs at the base price starting on first day of Plans implementation

Pine Barrens Credits – Transferable Development Rights
Oversight and Administration
Pine Barrens
Commission
Peter A. Scully
Pine Barrens Credit
Clearinghouse Board
Mitchell H. Pally New York State –
Governor’s Appointee
Suffolk County
Executive
Brookhaven Town
Supervisor
Andrew P. Freleng
James T.B. Tripp
The members of these Boards establish policy and direction for the TDR Program. As with these real wild turkey tracks in the barrens, knowing which direction you are traveling can be confusing.
Riverhead Town
Supervisor
Southampton Town
Supervisor
Credit Program
Duties
Steve A. Levy
+ representatives
Lori Baldassare
(Deputy Supervisor)
+ representatives
Philip J. Cardinale
+ representatives
Linda A. Kabot
+ representatives
•Approves and implements Plan
• Hears and decides allocation appeals
• Establishes overall policies
Richard W. Hanley
Robert Anrig
• Applies Plan, Chapter
6
• Oversees initial
Credit allocations
• Manages funds
• Establishes operational policies

Pine Barrens Credits – Determining the Allocation
1.
A “Letter of Interpretation” (“LOI”) is issued .
This is an estimate of Credits, based upon 1995 zoning, acreage, and any existing development.
2.
Applicant accepts or appeals.
Accept? Next step is a
“PBC Certificate” and a conservation easement. Appeal?
Commission holds hearing and decides final allocation. The appeals record to date is . . .
Pine Barrens Credit Appeals Statistics 1996 through 2008
Brookhaven Riverhead Southampton
Number of Appeals
(an appeal may affect several parcels)
Total Affected Parcels
Decisions Granting Additional Credits
(varies from amount sought)
30
169
10
0
0
0
25
150
11
Additional Credits Allocated
(above the original LOI allocation)
Decisions Leaving LOI Allocation Intact
Appeals Withdrawn Without Decision
Appeals Pending
46.77
19
1
0
0.00
0
0
0
26.28
12
2
0
55
319
21
73.05
31
3
0

Pine Barrens Credit Certificates are . . .
• Issued simultaneously with the placement of a conservation easement on the sending property, …
• Issued only by the
Clearinghouse
• Redeemable
• Saleable
• Transferable
• Serial numbered
• Assigned to a specific owner (not bearer documents)
• Registered with the Clearinghouse
• Tracked by the
Clearinghouse

Promoting the Credit Program
•
Pine Barrens Credit Registry – monthly listing of Credit holders, sellers, Letter of Interpretation (LOI) holders, and potential buyers.
• Regular reports – Certificates & Credits issued, conveyed (with sales prices), redeemed, etc.
• Clearinghouse Board of Advisors meetings – open to public with policy discussions and LOI applications.
• Commission hearings on Credit allocation appeals –
Public hearings as appeals are filed.
• Web Site – www.pb.state.ny.us
• Staff support and seminars – contact the office to request either !

• Stimulate market in PBCs through reverse auctions
• Auctions credits that it has acquired
• Maintains PBC registry
• Works with the towns and commission to maintain and improve receiving area capacity and values
• Value goal – PBC program should provide as much value to sending area property owners as public acquisition program
• Some large property owners have decided to take
PBCs rather than acquisition dollars

• The Clearinghouse has an outstanding offer to purchase
PBCs in the three towns at a floor price
• It has purchased PBCs in Riverhead at the floor price and in Brookhaven through a reverse auction
• It has held auctions to sell PBCs in its inventory
• It has sold PBCs at prices exceeding the purchase price

Easement Protected Lands and Pine Barrens Credits as of January 1, 2009
(Right: Robert Cushman Murphy County Park, Ridge)
Parcels
Acreage total
Average parcel
Credits generated
Credits redeemed
Credits not redeemed
Total value of
Credit sales
Brookhaven
322
705.995
2.19 ac
455.36
194.91
260.45
$14,141,313
Riverhead
22
513.548
23.24 ac
169.11
45.44
123.67
$2,225,440
Southampton
327
533.504
1.63 ac
252.59
80.404
172.186
$10,452,364
Total
671
1753.047
2.61 ac
877.06
320.754
556.306
$26,819,117

Intermunicipal Flows of Pine
Barrens Credits as of January 1, 2009
(Like the Credits listed here, the Carmans River also flows from the Core area out of the barrens. Shown here is a segment in Cathedral Pines County Park.)
Destinations
Brookhaven Town
Originating from
Riverhead Town
0.15
Brookhaven (District
200)
Patchogue (204)
Huntington (400)
Islip (500)
Riverhead (600)
Smithtown (800)
Southampton (900)
Quogue (902)
Southampton Village
(904)
Westhampton Beach
(905)
Totals
0.20
2.50
0.46
3.16
1.00
2.10
3.25
Totals
Southampton Town
8.00
6.50
0.10
0.26
7.84
5.85
28.55
8.15
0.20
1.00
11.10
0.00
0.10
0.46
0.26
7.84
5.85
34.96
= 10.9% of all Credit redemptions

“By the way, just what are those Credits selling for these days ?”
Pine Barrens Credits, which protect resources such as these, now have a “decade plus” track record of market values and sales, so we can answer this question with historical data!
Pine Barrens Credit Sales 1996 through 2008
2003
2004
2005
2006
Year
1996
# PBCs
1.00
Brookhaven Town
Sales
Value
7,500.00
Avg PBC
Value
7,500.00
# PBCs
0.00
Riverhead Town
Sales
Value
0.00
Avg PBC
Value
0.00
# PBCs
0.00
Southampton Town
Sales
Value
0.00
Avg PBC
Value
0.00
# PBCs
1.00
1997 31.18
383,140.00
12,288.01
56.17
561,700.00
10,000.00
4.52
48,814.00
10,799.56
91.87
1998 67.88
1,016,760.00
14,978.79
0.10
500.00
5,000.00
5.84
57,500.00
Totals
Sales
Value
7,500.00
993,654.00
Avg PBC
Value
7,500.00
10,815.87
9,845.89
73.82
1,074,760.00
14,559.20
1999 54.95
1,445,902.00
26,313.05
18.19
245,600.00
13,501.92
0.72
8,050.00
11,180.56
73.86
1,699,552.00
23,010.45
2000 36.29
1,280,211.00
35,277.24
6.00
102,000.00
17,000.00
9.71
194,200.00
20,000.00
52.00
1,576,411.00
30,315.60
2001
2002
29.04
46.21
1,142,000.00
1,839,400.00
39,325.07
39,805.24
7.00
26.98
118,000.00
485,640.00
16,857.14
18,000.00
0.89
1.77
19,900.00
53,800.00
22,359.55
30,395.48
36.93
74.96
1,279,900.00
2,378,840.00
34,657.46
31,734.79
60.02
2,920,350.00
48,656.28
16.85
1,209,550.00
71,783.38
2.00
7.50
232,500.00 116,250.00
830,000.00 110,666.67
0.00
6.00
2.15
1.00
0.00
288,000.00
146,000.00
70,000.00
0.00
48,000.00
67,906.98
70,000.00
4.44
10.59
40.89
52.30
173,450.00
912,700.00
3,047,900.00
3,652,250.00
39,065.32
86,185.08
74,539.01
69,832.70
64.46
33.44
45.04
60.80
3,093,800.00
2,410,250.00
3,426,400.00
4,552,250.00
47,995.66
72,076.85
76,074.60
74,872.53
2007
2008
13.68
5.75
1,353,000.00
481,000.00
98,903.51
83,652.17
2.10
0.00
208,000.00
0.00
99,047.62
0.00
16.55
9.85
1,488,350.00
795,450.00
89,930.51
80,756.35
32.33
15.60
3,049,350.00
1,276,450.00
94,319.52
81,823.72
Totals 372.35
14,141,313.00
37,978.55
125.69
2,225,440.00
17,705.78
158.07
10,452,364.00
66,124.91
656.11
26,819,117.00
40,875.95

Brookhaven
# Parcels/Acres
Riverhead
# Parcels/Acres
Southampton
# Parcels/Acres
Total
# Parcels/Acres
< 1 Acre
1-10 Acres
11-50 Acres
> 50 Acres
TOTAL
334/110
114/306
21/571
3/282
472/1,269
42/15
27/98
5/118
0/0
74/231
576/170
179/408
23/495
3/229
781/1,302
952/295
320/812
49/1,184
6/511
1327/2,802

Number of
PBCs
Number of
Parcels
Brookhaven
283
Riverhead Southampton
64 300
472 74 781
Total
647
1,327

• Market for PBCs is limited
• Town grants changes of zoning for PDDs in receiving areas without requiring PBC redemption
• Highest value of PBCs is dominated by septage flow transfer use for commercial properties. This makes purchase of PBCs by residential developers difficult.
• Some sending area property owners have never responded to any Clearinghouse communication
• Towns tend to relax protection of receiving area capacity as years go by – constant education required

• Has made a significant contribution to economic and equity underpinnings of the Act
• Has been responsible for preservation of over 1750 acres, almost 20% of core area land permanently protected to date (the land acquisition program accounts for the other
80%)
• TDR acquisition program values comparable
• Has mad a significant contribution to sustaining legality of plan and core area development prohibitions
• Reimbursed state DEC $5 million loan with $3.2 m still in
Clearinghouse account